The unit product cost of Product T6 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:
A)$1,332.57 per unit
B)$1,703.82 per unit
C)$1,282.35 per unit
D)$925.50 per unit

Question

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours
= $1,120,365 ÷ 8,300 DLHs = $134.98 per DLH (rounded)
Computation of traditional unit product cost: 11ea7998_5ebb_89f8_911b_7992f43c3a3e_TB2627_00_TB2627_00

The Unit Product Cost of Product T6 Under the Company's